Thread by @Rewkang

The New King of Money Markets

The @RDNTCapital Thesis twitter.com/i/web/status/1…

1/ At $5B and $2B TVL, Aave and Compound are currently the largest money markets in crypto

By innovating while others cruise, @RDNTCapital is the top competitor to challenge the throne and has the potential to become the new King of Money Markets in all of crypto

2/ At a glance:

-$260m TVL across Arb/BSC

-First functional cross-chain MM (lend on X chain, borrow on Y)
-Launching on ETH & zkSync next
-Safely adding more collateral like $ARB (other MMs move slowly)
-Token design optimized for demand & protocol growth

3/ Aave & Compound yield just 1-2% on stables, less than treasuries

With >$100B stablecoin mkt cap & $10B+ stables once in MMs now idle, this untapped liquidity is a huge opportunity

As 10-40% stablecoin yields from an audited, year-old protocol become known, expect TVL growth

4/ The 2nd biggest opportunity is ETH + LSDs when the mainnet dApp launches

$4B in Compound & Aave now, but Radiant's sustainable, incentivized yield can capture market share.
Plus, many non-stETH LSDs worth billions lack money markets; Radiant can be their first choice.

5/ Flywheel

Radiant is one of the largest beneficiaries of $ARB and will be incentivizing 1-yr LP lockers.

No other MM has listed $ARB yet besides Radiant - given Radiant's lindyness, we can expect continued inflows, allowing the $2B of ARB to find a home for single-side yield

6/ Big driver of RDNT growth has been its V2 Tokenomics flywheel upgrade which has boosted the value of its incentives warchest while directing more sustainable emissions to long term protocol aligned users

7/ @gametheorizing breaks it down beautifully here:

https://twitter.com/gametheorizing/status/1636805839418978304?s=20

1. User has $1M in deposits and meets the 5% in “locked LP” for emissions
2. RDNT price falls → User now below 5% threshold
3. User is incentivized to buy RDNT and re-lock more LP to stay above 5%.

8/ With the rising of @LayerZero_Labs and @zksync narratives, Radiant will be on track to be a big beneficiary, with people using the platform to farm potential airdrops

9/ Total TVL in both $ and ETH terms have followed hockey stick growth all year

Given we have taken a position, we will also be working with Radiant on some new growth hacking incentives to supercharge TVL growth and increase market share. Details to be announced in the future

10/ Revenues

Radiant has already overtaken Aave, Compound even Solana in 90D revenues

Looking at 90D trend, they are one of the fastest growing protocols in the space

11/ Valuation

Although it is high growth project, it is not trading at growth valuations, but rather cheap value, Beating out the blue chips on P/S ratio and in line on P/E ratio

12/ Active Community Engagement

The community is very active. DAO Governance proposals are getting 2,000+ votes on average with a third of all token holders registered in Snapshot

13/ Over the past few weeks, over $10M of dLP unlocked. When comparing total dLP tokens (both locked and unlocked) on 5/31 to those on 5/10, the total USD value of dLP has risen by approximately $5.2M. This is despite all the unlocks. Radiant is continuing to attract new lockers

14/ In the two weeks following RFP-17 and RFP-18 implementation, 71% of all new locks were for 6 months or 1 year. In contrast, only 40% locked for that duration last month. This indicates a strengthening commitment among participants

@MechanismCap is hiring public market research/investment analyst talent. Applicants can apply via DM with 2 written thesis/pitches on public market opportunities